Is It Possible to Get a Car Loan With Bad Credit

Planning on getting a new vehicle is always a great thing considering that it will serve you for a long time and plus you feel great when you get something for yourself. The car has to be comfortable for you and you should like the looks of it because in some way your car represents you.

Finding a car is taking a long time but you are surely feeling great since you are looking for something to help you with your normal life. In order to look for something you need to have a budget for it otherwise, you are just browsing to lose spare time. It is way easier when you already have money to invest in a vehicle but what happens if you don’t?

You will need to find some kind of financial boost whether credit or something else. When requesting a credit you already know that your score is one of the things that are important when it comes to getting the finance. Is there a possibility to get a loan for a vehicle with a bad score? In short, yes. However, you will need to know some things before you go to apply for one and that is what we are going to talk about in this article.

What is the rating for?

A credit score is basically a rating and an indicator of how well you are managing your funds and that is maybe the key thing for the lenders since it is a kind of guarantee that you are a responsible person who will give the money back on time. The score is a combination of things that you do, like paying bills regularly without being late for them, having or not having another loan simultaneously, the longevity of your account, etc.

Basically, you want the number to be bigger if you want to pay less for the loan. The lower the score, the more money you will need to pay for the bank rate. If you want to know your number you will need to call the financing institution or see if they have it posted on your profile or the account.

Know how much you can spend

To find a car for yourself you need to know how much you are willing to blow and most importantly how much you can pay for it. This can be calculated with the money that you earn every month and other things like how much you will have to spend monthly, the amount of gas that the car uses, the price for registration and for maintenance. Another important thing is the first payment since every dealership requires that.

If you have a bad credit number, try not to go for an expensive one since you are most likely to be denied a loan because they will think that you are not capable of returning the finances back.

Save enough for a good first payment

When you are getting a new vehicle, you will need to spend a certain amount of money for a down payment. This serves as a guarantee and also when you pay that you need fewer finances to borrow from the bank. Think of it as an advance, the more you pay now the less you need to pay later on and you won’t need much from the bank. With a good first payment, the bank will see that you are a serious buyer who is responsible enough to give the finances back when it’s due.

Go for a loan before looking for a car

You can think ahead of time and go to the bank where you already have an account to ask what you have to do so you can have a loan for this purpose, and if you can, how much can they give you. This way you can plan the budget better and maybe find better options for a car that will suit you best.

Having the loan before going out and finding the car you want will save you from nervousness whether you can have it or not. Also, having the money in your hand you can get yourself a better price since you are bargaining on the spot.

Search around for different credit options

You don’t need to get the first loan that you can. It doesn’t mean that having a bad credit score will have only one offer of a loan, you will need to look for options to avoid spending too much. There are different financing firms that will offer you different interests and maybe other benefits as seen on You should know that with a bad credit score you will have to pay way more than someone with a good one but you should always try your luck.

Have a friend to be a guarantor for the loan

This is one of the things that you can do to make your financing institution sure that the finances will be returned. Your friend or family member can sign a deal that if you don’t pay when it’s due, or stop paying completely, they will continue to pay off your car loans. This will give you better chances to get the funds with a bad score. To avoid being embarrassed that you are an irresponsible person and ruin your relationship with your friends and family, you will pay in time and both ends are happy.


Getting a car is an investment that you have to consider whether is worth it or not. If you have a bad score, you will need to pay more to the bank and you might spend more than what you expected. Since you have decided that this the thing that you want to do you will need to follow some of these bits of advice to get the loan. Make sure that you pay back on time so you can make your score better and maybe get out of this loan with a score that you thought you will never be able to have.

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